UAE Suspends Licenses of 32 Gold Refineries Over AML Non-Compliance

The UAE’s Ministry of Economy has suspended the licenses of 32 gold refineries in the country due to non-compliance with anti-money laundering legislation (AML). According to a statement from the Ministry, these licenses, which account for 5% of the gold sector in the country, were suspended from July 24, 2024, to October 24, 2024. The Ministry's decision followed a series of field inspections on activities related to the trade and manufacturing of precious metals and gemstones to ensure the highest levels of AML compliance in the gold sector.

The crackdown on financial crimes intensified as inspections revealed 256 violations by these refineries, averaging eight violations per refinery. The most significant violations included failure to implement necessary risk identification measures, failure to report suspicious transactions to the Financial Information Unit when required, and failure to cross-check customer and transaction databases against terrorism lists.

“The UAE reaffirms its steadfast commitment to developing a comprehensive legislative and regulatory framework to combat money laundering and ensure the highest levels of compliance with due diligence regulations for the responsible gold supply chain, aligning with global best practices,” stated Abdullah Ahmed Al Saleh, Undersecretary of the UAE’s Ministry of Economy. In September 2022, the Ministry of Economy introduced the Due Diligence Regulations Policy for the Responsible Sourcing Process, aimed at strengthening the national system to combat money laundering and terrorism financing in the precious stones and gold sectors, effective since January 2023.

“The Ministry is continuously enhancing its supervisory role over designated non-financial business sectors and professions, including activities in trading and manufacturing precious metals and gemstones, real estate brokerage, corporate service providers, and auditing activities, through intensified inspection campaigns to ensure compliance with the country’s anti-money laundering legislation,” added Al Saleh.